Last Engulfing Top on Japan 225: Bearish Reversal Ahead
Updated
In this 1-hour chart of Japan 225, a bearish **Last Engulfing Top** pattern has formed, indicating a potential reversal after a bullish run. The engulfing candle suggests that sellers are gaining control, and a short position may be considered if the price continues to decline below the engulfing candle's low.
Key Points:
- Pattern Identification: The Last Engulfing Top is a strong bearish signal, occurring after a notable uptrend.
- Confirmation: The price is currently trading below the pattern, adding confidence to the bearish outlook.
- Potential Targets:Traders may target the support levels around 35,400 - 35,336 USD, with stops placed above the engulfing pattern near 36,294 USD.
Risk Management:
- Monitor for any bullish reversal signals that could invalidate this setup.
- Adjust stop-loss levels according to your risk tolerance and market conditions.
This setup offers a clear bearish opportunity, but as always, proper risk management is crucial when trading reversal patterns.
Key Points:
- Pattern Identification: The Last Engulfing Top is a strong bearish signal, occurring after a notable uptrend.
- Confirmation: The price is currently trading below the pattern, adding confidence to the bearish outlook.
- Potential Targets:Traders may target the support levels around 35,400 - 35,336 USD, with stops placed above the engulfing pattern near 36,294 USD.
Risk Management:
- Monitor for any bullish reversal signals that could invalidate this setup.
- Adjust stop-loss levels according to your risk tolerance and market conditions.
This setup offers a clear bearish opportunity, but as always, proper risk management is crucial when trading reversal patterns.
Trade active
A little bit choppy. but, it's on the way down.
Trade closed: stop reached
SL
Tanakorn Koomrampai ,CMT, CFTe
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FB page (International) : facebook.com/graphtechniq
FB page (Thai) : facebook.com/graphtechnic
Line @graphtechnic
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